OREGON RECEIVES $6.2 MILLION FROM TOBACCO COMPANIES

February 27, 2009

Attorney General John Kroger announced today that Oregon has received $6.2 million in disputed tobacco payments that are part of a master settlement between cigarette-makers and the states.

"This payment comes at a critical time, with the state facing a massive budget crisis. These funds will help pay for essential services to help people in need" Kroger said.

The 1998 master settlement requires tobacco companies to make annual payments to the 46 participating states. Oregon receives between $160 and $180 million per biennium. There has been an ongoing dispute over whether tobacco companies are entitled to reduce their payments because of lost market share to companies that are not part of the settlement. The companies this week released more than $540 million of the disputed payments to the states.

The historic multi-billion dollar tobacco settlement compensates states for the cost of treating tobacco-related diseases. The settlement also places restrictions on tobacco industry advertising and marketing and limits its ability to fight anti-tobacco legislation.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, improve child welfare, and protect the rights of all Oregonians.